Researcher at Mawlana Bhashani Science and Technology University Releases New Data on Risk Management (The Nexus of Competition, Loan Quality, and Ownership Structure for Risk-Taking Behaviour): Insurance – Risk Management

2023 APR 17 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in risk management. According to news reporting out of Tangail, Bangladesh, by NewsRx editors, research stated, ““The core purpose is to explore the relationship between competition, loan quality, ownership structure, and risk for MENA economies.” In addition, this study examines the financial stability level of dual banking and explores the bidirectional causality of competition and risk concerning the impact of ownership structure.”

Financial supporters for this research include Institute For Advanced Research (Iar) At The United International University (Uiu)-dhaka-1212, Bangladesh.

The news reporters obtained a quote from the research from Mawlana Bhashani Science and Technology University: “This study uses 748 observations from 2011 to 2020 in MENA countries. The Generalized Method of Moments (GMM) is an econometric technique used to estimate the parameters of a statistical model. The study findings indicate a negative (positive) relationship between MENA bank competition and risk (financial stability). It indicates that lower bank competition reduces bank credit risk and increases financial stability in MENA countries. Regarding ownership structure, Islamic banks display a stronger position in MENA economies than that of Commercial banks and Specialized Government Institutions. In contrast, specialized government institutions are riskier than commercial banks and Islamic banks.”

According to the news editors, the research concluded: “Loan quality shows the two-way causality between the degree to which banks compete and the quality of their loans to customers in the MENA markets. This study sets itself apart from other studies by creating a new segmented literature review portion. Finally, a significant policy implication is provided for academics, researchers, and policymakers interested in applying these findings.”

For more information on this research see: The Nexus of Competition, Loan Quality, and Ownership Structure for Risk-Taking Behaviour. Risks, 2023,11(4). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11040068.

Our news journalists report that more information may be obtained by contacting Syed Moudud-Ul-Huq, Department of Accounting, Mawlana Bhashani Science and Technology University, Santosh, Tangail 1902, Bangladesh. Additional authors for this research include Md. Abdul Halim, Farid Ahammad Sobhani, Ziaul Karim, Zinnatun Nesa.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the authors of this research: Syed Moudud-Ul-Huq (http://orcid.org/0000-0002-9226-5131), Md. Abdul Halim (http://orcid.org/0000-0001-7172-3650).

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